US and Iran Make ‘Progress’ in Talks, Aim to Keep Hormuz Open
(Bloomberg) — The US and Iran made “encouraging progress” in talks on a peace deal and will continue technical-level discussions this week, mediators said, even as President Donald Trump again threatened strikes if Hezbollah keeps attacking Israel.
US Vice President JD Vance and Iranian Foreign Minister Abbas Araghchi were among the participants in the talks in Bürgenstock, Switzerland. “Encouraging progress has been made including the creation of a mechanism for further technical talks,” mediators Qatar and Pakistan said in a joint statement. The parties agreed on a roadmap toward reaching a final deal within 60 days.
The sides established a communication line to avoid incidents and miscalculations, with the aim of ensuring safe passage for commercial vessels through the Strait of Hormuz, the mediators said. They also agreed to create a “de-confliction cell” involving the parties and Lebanon to help ensure adherence to the cessation of military operations there.
Crude oil turned lower and US stock-index futures pared losses after the statement. Brent crude fell 1.5% to trade below $80 a barrel after climbing more than 2%.
Pakistani and Qatari mediation delivered major progress toward ending the war in Lebanon, Araghchi said in a post on X.
“Oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran,” the post from the foreign minister said.
Things got off to a confusing start Sunday when Iranian media reported that Iran halted talks over Trump’s latest threat.
As the meetings got underway, Trump said in a social media post that he would strike Iran again if it doesn’t “immediately stop their highly paid PROXIES in Lebanon from causing trouble.”
He also warned Iran that the US might start collecting tolls if there’s no deal. Speaking Sunday to Fox News, Trump said he told Iranian leaders directly that if they close Hormuz, “You won’t even make it back” to Iran, using an expletive.
While a hard-won interim deal has signaled a pause in US-Iran hostilities, Sunday’s discussions are likely just the start of protracted wrangling that will span topics including Iran’s nuclear capabilities and economic relief for Tehran.
“What today really represents is the beginning of a technical negotiation that’s not going to solve every disagreement,” Vance told reporters, speaking alongside officials from Pakistan and Qatar. Jared Kushner and Steve Witkoff, Trump’s global negotiators, have been engaged in ongoing technical talks.
A resolution to the fighting in Lebanon will be decisive for the success of the US-Iran talks in Switzerland, according to an official familiar with the discussions, who asked not to be identified discussing sensitive information. That means a positive outcome in the negotiations ultimately hinges on Israel’s support, the person added, with only a retreat from Lebanon fully ensuring that the interim deal can move forward.
Israel was not a party to the talks that led to the agreement.
Iranian envoys are focused on how the meeting will be received at home, the official said. That led to their delegation staying out of the room and refusing to participate in the opening televised remarks before discussions started because they did not want to be seen shaking hands with US delegates before agreements had been reached, the person said.
The official said a key challenge was bridging the differing approaches of the Iranian and US delegations.
Tehran on Saturday accused Israel of violating a truce in Lebanon and said the Strait of Hormuz, a key transit point for global energy supplies, would be shut again. Despite the announcement, millions of barrels of oil continued to flow through the waterway.
Under the terms of the memorandum of understanding signed by Trump on Wednesday, the US and Iran have 60 days for negotiations, although the pact allows for an extension.
Iran’s announcement on Hormuz cast a cloud over the talks, but the immediate impact on vessel traffic was unclear. Even before the recent ceasefire, millions of barrels of oil had been quietly transiting the waterway each day.
Three fully laden India-linked supertankers re-emerged in the Gulf of Oman on Sunday after signaling an attempt to cross the strait on Friday, according to ship-tracking data compiled by Bloomberg.
The supertankers, each signaling Indian ownership or India-bound cargo, carry nearly 6 million barrels of Iraqi and Kuwaiti oil. Their attempts to sail toward Qeshm Island suggest they may have taken a Tehran-approved route.
US Central Command said commercial ship traffic increased in the strait on Saturday, with 55 merchant vessels carrying cargo and more than 17 million barrels of oil transiting the waterway.
Israel, Washington’s partner in the war on Iran that began Feb. 28, has been fighting a parallel campaign against Hezbollah in neighboring Lebanon. Iran has consistently sought to link the conflict there, which has killed thousands and displaced more than 1 million Lebanese, with the broader US negotiations.
Tehran views the US as having “direct responsibility” for the situation in Lebanon and Israel’s military actions, Foreign Ministry spokesman Esmail Baghaei said in comments cited by the IRNA news agency.
Israel has insisted it’ll keep troops on its borders until it’s sure that Hezbollah, designated a terrorist organization by the US, is no longer a threat. The Israel Defense Forces said its recent operations are targeting a network of underground bunkers where Hezbollah fighters are believed to be sheltering.
–With assistance from Sara Gharaibeh, Weilun Soon, Jennifer A. Dlouhy, Dan Williams, Fiona MacDonald, Jon Herskovitz, Zoe Ma and Michael Heath.
(Updates with details.)
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